Offshore Wind Market Size to Surpass 60GW by 2024, GM Insights Report Says

Offshore wind market size will surpass 60GW by 2024, according to the latest report by Global Market Insights.

Increasing measures to reduce the greenhouse gas emission along with growing electricity demand will significantly drive the global offshore wind market size. In 2016, the member countries of the European Union announced their plan to achieve 21% renewable energy targets by 2020 through concurrently reducing the GHG emission level to 26% from 1990 level.

Rising investment towards the development of clean energy sources from financial institutions including International Finance Corporation (IFC), Asian Development Bank (ADB) and the World Bank will upsurge the market share. The Government of UK has established the Offshore Wind Investment Organization (OWIO) to promote investments towards sustainable energy resource integration. The country has further acknowledged the green investment bank to raise and circulate funds across clean energy projects.

UK offshore wind market will witness strong growth subject to favourable government measures to support the development of sustainable technologies. Regulators have introduced Contracts for Difference to ensure long term stable revenues from electrical infrastructure projects across the country. The Reform further lays provisions to ascertain viable returns to investors along with encouraging investments through leveraging schemes.

High-end research initiatives to cater to the competitive energy industry through efficient and cost-effective technology will drive the market size. In 2017, German Federal Network Agency launched an offshore wind tender for 1.5GW to lower the generation tariff. The government of Netherlands is also targeting to reduce the overall cost by 40% over the next decade. In 2017, Siemens and Statoil in collaboration have established a 30MW floating wind farm across Norway under the Hywind Scotland project.

Wires and cables in 2016 accounted for over 2% of the offshore wind market revenue share. Expanding microgrid networks favored by advancing distributed generation technology will embellish the business landscape. In 2016, Belgium’s Tideway awarded USD 14.1 million contract to Prysmian for supplying 33kV inter array submarine cables for a 309MW power project.

China market is set to expand to over 12GW by 2024. Clean energy capacity addition target accompanied by exponentially rising energy demand will uplift the industry size. Increasing government aided funds coupled with asset and financial leveraging facilities towards development of sustainable energy projects will further stimulate the business outlook. In 2017, State Power Investment Corporation announced its plan to develop 800MW wind farm across coast of Yancheng and Jiangsu.

Favorable government polices coupled with increasing investments towards the expansion and enhancement of sustainable energy will foster the U.S. offshore wind market.

Source: Global Market Insights